REGISTERED NUMBER: |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023 |
REGISTERED NUMBER: |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023 |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The directors present their strategic report for the year ended 28 February 2023. |
REVIEW OF BUSINESS |
The directors are satisfied with the performance of the company during the year, particularly in light of the current economic climate and the continuous increase of government legislation. This financial year has again shown trading profits. Revenue in the year reached record levels after the covid period. The company is one of the top 50 demolition businesses out of 4,299 companies within this industry in the UK and Ireland (www.bolddata.nl database). |
Key performance indicators |
Year End February | 2023 | 2022 |
Increase Revenue | up 21% | up 38% |
Human Resources Input | up 12% | up 19% |
Profit before tax | £449,502 | £85,123 |
Business strategy, objectives and future developments |
The business strategy is to grow by serving the industry with complementary services, demolition, provision of recycling management, haulage, and construction. |
The company's objective is to maintain steady performance and growth with the lowest level of leverage. It aims to increase shareholder funds and meet its responsibilities to other stakeholders with priorities given to environmental matters. Once again, the company continued investing in its infrastructure and workforce with continual training, upskilling, and keeping up to date with current Health & Safety Legislation. We aim to provide progression opportunities and fulfilling careers for all employees. |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company uses its working capital instruments which include cash and various elements, such as trade debtors and creditors which arise its operations. The main risks from those financial instruments are market risk, cash flow, interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. |
Legislative risk The industry is controlled by legislative increases year on year that dictate disposal prices at third party sites. The company's strategy is to divert material from landfill, however alternative off-takers align their rates with increases set by the government. We hope for near future government incentives instead of more legislation. |
Market risk encompasses three types of risk being currency risk, fair value interest rate risk and price risk. The company conducts all transactions in Sterling and therefore has no material exposure to currency risk. Other risks are summarised below. |
Price risk in financial instruments may exist where their value varies in accordance with currency, interest rate or other market movements. None of the company's financial instruments are subject to any market movements affecting price risk. In summary therefore exposure to price risk is not considered material. |
Commodity risk. The business model relies heavily on being competitive in all environments including volatile market. Thus, we rely on the recovery of commodity material for resale to boost margin. Uncertainty in the market can affect rebates paid, having a consequential effect on our pricing model. Brexit is having a consequential effect of commodity trading with fewer off-takers and more red tape. |
Liquidity risk. The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and lo invest cash assets safely and profitably. |
Interest rate risk. The interest amounts in the company's reports, including directors' loans invested into the company, is determined by reference to base rate and therefore the interest rate risk is not considered material to those financial instruments' fair value. |
Credit risk. To manage credit risk, the directors set limits for customers based on a combination of payment history and third-party credit references. Credit limits are reviewed on a regular basis. Also new credit controller manager's role was created and filled during the year in order to strengthen this part of the accounting department. |
ON BEHALF OF THE BOARD: |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The directors present their report with the financial statements of the company for the year ended 28 February 2023. |
PRINCIPAL ACTIVITY |
The principal activities of the company in the year under review were those of the retail, wholesale, processing and reclamation of scrap materials, demolition work, building contractors and the operation of a waste transfer station. |
DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2023. |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
AUDITORS |
DJH Mitten Clarke Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED |
Opinion |
We have audited the financial statements of Cheshire Demolition & Excavation Contractors Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other matters |
The financial statements were not audited in the prior year as the company was below the threshold for audit. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our planning process: |
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. |
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work Act 1974 and National Minimum Wage act 1998. Specific laws and regulations that are key to the continuation of the business were Environmental Protection Act 1990 and Waste Management Licensing Regulations 1994. |
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- Identifying and testing journal entries, in particular those that were material or unusual. |
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to fixed asset depreciation rates, residual values and provisions for bad debts. |
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation, as identified at planning above. |
- Documenting and verifying all significant related party balances and transactions. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
as restated |
(Unaudited) |
Notes | £ | £ |
REVENUE | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
485,334 | 149,223 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
444,862 |
Prior year adjustment | 8 | ( |
) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
STATEMENT OF FINANCIAL POSITION |
28 FEBRUARY 2023 |
2023 | 2022 |
as restated |
(Unaudited) |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Property, plant and equipment | 10 |
CURRENT ASSETS |
Inventories | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | 879,107 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2021 |
Changes in equity |
Total comprehensive income | - | 157,327 | 157,327 |
Balance at 28 February 2022 | 979,107 | 982,107 |
Prior year adjustment | - | ( |
) | ( |
) |
As restated |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2023 |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
1. | STATUTORY INFORMATION |
Cheshire Demolition & Excavation Contractors Limited is a private company, limited by shares, registered in England & Wales. The company's registered number is 01967635 and its registered office address is 72c Moss Lane, Macclesfield, Cheshire, SK11 7TT. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The company had net assets of £1,326,969 (2022: £882,107) at the year end and has continued to generate profits post year end. The directors believe that the company is well placed to manage the risks at these challenging times and therefore continue to adopt a going concern basis of accounting in preparing these financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates. |
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying |
amount of assets and liabilities are outlined below. |
Estimating the useful economic life and residual value of an asset and the anticipated residual value are considered key in calculating an appropriate depreciation charge. |
In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee. |
Making judgement based on historical experience on the level of provision required for impairment of inventories and work in progress. |
Making judgement based on historical experience on the valuation of amounts receivable on contracts. |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue represents the net invoiced sales of goods, demolition work, haulage services and skip hire excluding value added tax. |
Material sales are recognised when the goods are delivered or collected by the customer, the customer has accepted them and all related receivables are reasonably assured. |
Demolition work and haulage services are recognised as those services are provided to the customer, the customer has accepted them, and collection of the related receivables is anticipated. Consideration accrues as contract activity progresses by reference to the value of work performed. Revenue is not recognised where the right to receive payment is contingent on events outside the control of the company. |
Unbilled revenue is included in debtors as 'Amounts recoverable on contracts'. |
Skip hire services are recognised upon the collection of the skip, being the completion of the service provided to the customer, the customer has accepted the service, and all related receivables are reasonably assured. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2014, has been amortised evenly over its estimated useful life of three years. |
Property, plant and equipment |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter |
Improvements to property | - 2% on cost |
Plant and machinery | - 15% on reducing balance, 4-5 years straight line |
Motor vehicles | - 25% on reducing balance, 3-4 years straight line |
Computer equipment | - 33% on cost |
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises. |
Inventories and work in progress |
Inventories and work in progress are stated at the lower of cost and net realisable value. Cash receipts for work in progress contracts are deducted from the value of work in progress or, to the extent that they exceed this value, are included in creditors. |
Cost comprises direct materials on a first in, first out basis and direct labour, plus any attributable overheads based on a normal level of activity. Net realisable value is based on estimated selling price less attributable costs of disposal. Provision is made for all foreseeable losses and in the case of inventories, due allowance is made for obsolete and slow moving items. |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance lease are capitalised in the statement of financial position. Those held under the hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to income statement over the relevant period. The capital element of the future payments is treated as liability. |
Rentals paid under operating leases are charged to income statement in the period to which they relate. |
Pension costs and other post-retirement benefits |
The company operates a small self administered pension scheme for the benefit of the directors. Contributions payable to the company's pension scheme are charged to income statement in the period to which they relate. |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by class of business is given below: |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
All revenue is generated in the UK. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Wages and salaries |
Social security costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
(Unaudited) |
Operational |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Directors' remuneration |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Bank loan interest |
Directors' current account interest |
Hire purchase interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax: |
Accelerated capital allowances |
Tax on profit |
UK corporation tax has been charged at 19% . |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods |
Losses carried forward | (195,557 | ) | (161,724 | ) |
Change in tax rate | 61,462 | - |
Total tax charge | 4,640 | 27,796 |
For financial years beginning after 1 April 2023, the corporation tax rate will be increased to 25% for profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by marginal relief. The directors are not aware of any other factors that will materially affect the future tax charge. |
8. | PRIOR YEAR ADJUSTMENT |
A prior year adjustment was made in relation to a £100,000 deposit held in work in progress, which was paid personally by a director. There is an effect on corporation tax of £19,000. |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 March 2022 |
and 28 February 2023 |
AMORTISATION |
At 1 March 2022 |
and 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Improvements |
to | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 March 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 March 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to ownership | - | (436,580 | ) | (436,580 | ) |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to ownership | - | (251,515 | ) | (251,515 | ) |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
11. | INVENTORIES |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Inventories |
Work-in-progress |
12. | DEBTORS |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts recoverable on contracts |
Other debtors |
Corporation tax |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Trade debtors |
Aggregate amounts |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Social security and other taxes |
Other creditors |
Directors' current accounts | 1,632,573 | 1,813,874 |
Accrued expenses |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
as restate |
(Unaudited |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
16. | LEASING AGREEMENTS - continued |
Non-cancellable | operating leases |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Hire purchase contracts | 1,446,408 | 1,455,670 |
The hire purchase debt is secured against the assets concerned. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
as restated |
(Unaudited) |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Tax losses carried forward | ( |
) | ( |
) |
623,581 | 618,939 |
Deferred |
tax |
£ |
Balance at 1 March 2022 |
Provided during year |
Balance at 28 February 2023 |
CHESHIRE DEMOLITION & EXCAVATION |
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 3,000 | 3,000 |
20. | RESERVES |
The following describes the nature and purpose of each reserve within equity: |
Reserves | Description and purpose |
Retained earnings | All other net gains and losses and transactions with owners not recognised elsewhere |
21. | ULTIMATE PARENT COMPANY |
The immediate and ultimate parent company is Cheshire Demolition Holdings Limited, a company registered in England and Wales, which prepares group consolidated financial statements. Copies can be obtained from The Exchange, 5 Bank Street, Bury, Lancashire, BL9 0DN. |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties of the company are F S Swindells and N Trueman, the directors and shareholders of the ultimate parent company. |